Malaysia’s MSC to halt Koba Tin operations as contract expiry nears

November 07, 2012 

SINGAPORE, Nov 7 — Malaysia Smelting Corporation will suspend mining and smelting operations at its majority-owned Indonesian tin unit to stem losses from lower prices and slowing Chinese demand ahead of the expiry of a work contract, the company said.

MSC’s decision to halt operations at PT Koba Tin precedes the expiry next March 31 of its mining contract, or contract of work (CoW) for the unit, which is 75 per cent owned by MSC and 25 per cent by Indonesia’s largest tin miner, PT Timah.

Indonesia, the world’s biggest exporter of refined tin, announced a series of new mining rules this year, including a limit on foreign ownership in mines to no more than 49 per cent after 10 years of production.

The rules are not affected by a review of parts of the country’s mining regulations announced this week.

“Due to continuing losses at PT Koba Tin and having evaluated the available options, PT Koba Tin has decided to suspend its entire mining and smelting operations to minimize further losses pending the renewal of CoW,” MSC said in its third quarter results release on Tuesday.

The company reported losses of RM41,465 for the nine months that ended in September, compared to a profit of RM106,389 for the corresponding period a year earlier.

“The operating environment continues to be difficult and challenging due to weaker demand and low prices for commodities arising from the prevailing global economic uncertainties including sovereign debt concerns, economic recession in Europe and slower growth in China,” it said.

Tin traded at US$20,738 a tonne on the London Metal Exchange today. The price of the metal, mainly used in solders for electronics, has gained about 8 percent this year but is well off a record above US$33,000 a tonne set in April last year.

Unlisted Koba Tin was the 11th biggest producer of refined tin in 2010, at 6,644 tonnes.

The government has asked PT Timah to take over the operations of PT Koba Tin when its contract expires in 2013, an official at the state-owned firm said in August.

A spokesman at PT Timah said he had heard that PT Koba Tin has to pay a fee to the government to continue mining activities until the end of March and had decided against this. He added that there was no update on the contract issue. — Reuters 

 

This is a low volume stock. Probably need to hold it as a long term investment.

 

 

http://www.theedgemalaysia.com/business/191083-msia-smelting-corp-rises-on-dividend-plan.html 

M’sia Smelting Corp rises on dividend plan

Written by Surin Murugiah of theedgemalaysia.com

Thursday, 11 August 2011 09:14

KUALA LUMPUR: Shares of MALAYSIA SMELTING CORPORATION [] Bhd rose on Thursday, Aug 11 after the company declared a gross interim dividend of 12 sen per share to be paid on Sept 28.

At 9.10am, MSC added 28 sen to RM4.42 with 17,000 shares traded.

The company’s net profit for the second quarter ended June 30, 2011 surged to RM36.3 million from RM7.98 million a year earlier due mainly to better results from its Butterworth smelting operations and investments in KM Resources Inc.




http://biz.thestar.com.my/news/story.asp?file=/2011/8/11/business/9278870& sec=business

Thursday August 11, 2011

MSC posts higher profit

By EDY SARIF 
edy@thestar.com.my

 

KUALA LUMPUR: Tin producer  Malaysia Smelting Corp Bhd (MSC)posted a higher net profit of RM36.3mil in the second quarter ended June 3O compared with RM7.98mil a year earlier due to higher profit from its tin mining and smelting operations in Malaysia and Indonesia as well as higher tin prices.

Revenue for the period rose to RM853mil versus RM623mil while earnings per share were 36 sen against 10.6 sen.The group had proposed an interim dividend of 12 sen per share less 25% tax per share payable on Sept 28.

Meanwhile, at a media briefing yesterday, group  chief executive Datuk Seri Dr Mohd Ajib Anuar  said the group was hoping to acquire new and existing mines projects in Malaysia and Indonesia.

“We are hoping to get the approvals and getting the licences for some of the mines this year and some next year,” he said, adding that the mines were not that big in size and capable of producing 100 to 200 tonnes per month.

As for the second-quarter results, Mohd Ajib said the group expected the overall performance to remain profitable in the second half of 2011 despite the current market volatility and uncertain short-term outlook.

He also said MSC was optimistic about the long-term prospects of the tin industry and believed that the group would be able to capitalise on the strong global tin market fundamentals to expand its business.

 

 

 

 

DBSV Initial Report 15/07/11

http://kfc1973-stock.blogspot.com/2011/07/msc-proxy-to-higher-tin-prices-hwangdbs.html

 

 

Higher tin prices boost Malaysia Smelting Corp 1Q profits

By  Surin Murugiah of theedgemalaysia.com  |  The Edge  –  Mon, May 9, 2011 

KUALA LUMPUR: Malaysia  Smelting  Corporation  Bhd posted  net profit  RM28.28 million for the first quarter ended March 31, 2011 compared to net loss RM29.13 million a year earlier, due mainly to higher tin prices.

Revenue for the quarter rose 13.3% to RM737.87 million from RM651.18 million.  Earnings per sharewas 30.40 sen while  net assets  per share was RM3.89.

In a filing to  Bursa Malaysia  on Monday, May 9,  MSC  said the increase in net profit was due mainly to higher operating profits by its tin mining and smelting operations in Malaysia and  Indonesia  on the back of higher tin prices.

On its current year prospects, MSC said it expects its overall performance for 2011 to be better than last year. 

 

 

Possible TP. May target by BBs for some profit (CIMB Bank Berhad, Singapore Branch--CIMB,) 

For short term stake holders, may hit 10-15% premium, it performance fall slightly below expectation. currently at about 3-4% premium, a 10% premium remain, refer to M'sia side.

So far after 2.40 hours, starting from a lower base of 1.78, it hit a low of 1.76 before moving forward to 1.81 - 1.82 high.

MSC 100

1.780

1.810

0.000

0.0

Vol-4,391,800

330,000

1.800

1.810

29,400

 

 

Malaysia Smelting opens at $1.78 in S’pore stock market debut 

WRITTEN BY THOMSON REUTERS

THURSDAY, 27 JANUARY 2011 09:10

Shares of Malaysia Smelting Corp (MSC) (MSCB.KL) opened slightly above their offer price on their Singapore debut on Thursday, helped by the generally bullish outlook for commodity prices.
Around 9:02 a.m., MSC shares were being traded at $1.80 after opening at $1.78, a touch higher than the Singapore offer price of $1.75 a share.

Shares of the Kuala Lumpur-listed firm, which is involved in tin mining and smelting, closed 1.4% lower on Wednesday at 4.81 ringgit, or about $2.06, a share.



MSC, whose majority shareholder is Singapore's Straits Trading Co (STCM.SI), raised net proceeds of $40.1 million in a Singapore secondary offering last week. 

 

 

Malaysia Smelting Corporation Berhad - News Release 

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_05B3CF5B19E4AFFC48257824003BA16E/$file/MSC_Announcement_NewsRelease_11.01.26.pdf?openelement 

At the close of the public offer at 12.00 noon on January 25, 2011,  2,017 valid applications

were received for the 1,000,000 Offering Shares made available to the public for subscription.

In total, these applicants applied for an aggregate of 23,759,500 Offering Shares, with

application monies received amounting to approximately  S$41.6 million. The public offer was

approximately 23.8 times subscribed.

The Group’s placement tranche also attracted strong interest from institutional investors and

high net worth individuals, including  HWANGDBS Investment Management Berhad which

had subscribed for an aggregate of 3,100,000 Placement Shares, representing 12.4% of the

25,000,000 Offering Shares.

Based on the total Offering of 25,000,000 Offering Shares and the total valid applications

amounting to 47,749,500 Offering Shares (comprising valid applications for 23,759,500 Offer

Shares and 23,990,000 Placement Shares), the Offering was approximately 1.9 times subscribed. 

 

 

Malaysia Smelting Corp Bhd says IPO 0.9 times oversubscribed

WRITTEN BY THE EDGE

WEDNESDAY, 26 JANUARY 2011 22:14

Bursa-listed Malaysia Smelting Corporation Berhad, the integrated tin mining and tin smelting group, announced that its IPO was 0.9 times oversubscribed. Malaysia Smelting Corporation’s IPO comprised 25 million ordinary shares at $1.75. In total, applications amounting to 47,749,500 offering shares -- comprising valid applications for 23,759,500 offer shares and 23,990,000 placement shares. Malaysia Smelting Corporation says it intends to use $8.3 million of the net proceeds of $40.1 million for the expansion of mining and smelting operations through the acquisition of plant and machinery, $26.2 million for the development of new mines, and $5.6 million for general working capital.

 

 

 

Malaysia Smelting Corporation Berhad - Closing Share Price on the Bursa Malaysia Securities Berhad 

The closing price of the Shares, on the Bursa Malaysia on 26 January 2011 (being the last trading day 

on Bursa Malaysia  before the listing of  the Shares on the SGX-ST), was RM4.81 or  equivalent to 

approximately  S$2.02 based on an exchange rate of S$1.00 : RM2.3828, being the middle rate 

prevailing on 26 January 2011 as published by Bloomberg L.P..

The Shares will be listed and quoted in the Official List of the SGX-ST and trading in the Shares will 

commence on  a  “ready” basis with effect  from 9.00 a.m. on 27 January 2011. The Shares will be 

traded in board lot sizes of 100 Shares 

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_680E88410B31053548257824003A42DE/$file/MSC_Announcement_ClosingSharePrice_11.01.26.pdf?openelement 

 

 

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_A1A200E0D532119548257824003AA309/$file/MSC_Announcement_BallotingResults_11.01.26.pdf?openelement